Dell asks workers to take unpaid leave in latest cost-saving effort

A memo to all employees at Dell Inc. outlining the company’s latest effort to cut costs asks workers to consider taking up to five days of unpaid time off to help prevent more layoffs.

According to spokesman David Frink, the memo from CEO Michael Dell says the new program calls for a temporary companywide hiring freeze, the elimination of contract employees, severance packages to those who depart voluntarily, and a voluntary furlough of one to five days. The memo also states that more layoffs may be necessary if the other elements of the program do not achieve enough cost savings. Frink declined to say how much money the company hopes to save via the program.

“We’re implementing a program that helps better position Dell for long-term competitiveness,” says Frink. “What we’re trying to do is address costs in a way that gives employees more choices.”